Throughout the week, I run across articles written by other people that may be of interest to you. This week I am sharing one article which is on the topic of “should you invest or should you keep your money in cash”.
The article is from Noah Buhayar of Bloomberg and is titled, Buffet Nears A Milestone He Doesn’t Want: $100 Billion In Cash.
In this article, Buffet states that he shouldn’t keep this amount of money in cash for the long term earning next to nothing. He understands the importance of putting it to work. But apparently he hasn’t yet found the right deal.
It is speculated in the article that perhaps the market is too expensive and Buffet is waiting for an ideal time to invest, but even that comes with significant risks. If you’ve read my prior blogs, you know that I routinely talk about the amount of evidence that shows the extreme difficulty in trying to find out when to get into and out of the market.
I personally don’t feel that Buffet is trying to time the market. I believe instead that he is trying to find the right deal. It’s this very important concept that caused us several years ago to choose Dimensional Fund Advisors as our preferred investment provider. It does matter what you pay for things and this is what I feel Buffet is doing, which is much different than market timing.
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